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- The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equationWhen selling price is constant and variable costs increases. What will be the effect to the net income? Net income increases Net income decreases Net income remains the same Net income becomes zero Group of answer choices 1 2 3 4During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit? Why?
- Suppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select both the correct answer to elastic, unit, or inelastic as well as what the company should do to increase revenue. Since 0which of the following occurs if a company decreases its selling price per unit? a. net income increase b. more than one of the answers would occur c. contribution margin ration increase d. break even point increase e. contribution magrin increaseWhich of the following statements is correct? Da. If price equals cost, sellers are earning no profits Ob.lf price equals cost, sellers are earning their opportunity cost Oct price equals cost, economic profits are greater than zero Od lf price equals cost, economic profits are less than zeroIn the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even. b.are treated as a variable cost. c.are treated as a fixed cost. d.increase the sales volume required to earn a desired profit.How is the quantity factor for an increase or a decrease in the amount of sales computed in using contribution margin analysis?XYZ Company wishes to gain more market share. In order to do that, the company is planning to double the current production and sales quantity. At the same time, the company plans to decrease the selling price per unit by half. Assuming that the total fixed cost and the variable cost per unit remain unchanged, what would be the effect on profit? O a. Cannot be determined using the information in the question. O b. None of the given answers Oc. Profit would increase O d. Profit would remain unchanged Oe. Profit would decreaseWhich of the following items will not cause the company's ROA to increase? Multiple Choice O O Reducing costs. Reducing company assets without impacting sales. Increasing company assets. Increasing the selling price per unit. $?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can be divided into variable and fixed components a O Costs are linear b O Sales mix of products sold does not remain constant .cO Selling price per unit does not change with volumed O Fixed cost per unit is not constant e OWhen the return on sales (also known as net profit margin) is negative, what does this mean? Group of answer choices Costs and expenses combined are bigger than sales Sales is smaller compared to net income The tax amount is higher than sales Cost of goods and operating expenses are higher than salesSEE MORE QUESTIONS
